On January 1, 2019, Mickey Mouse Co. acquired 20,000 ordinary shares out of the 100,000 outstanding ordinary shares of Minnie Mouse Inc. for P5,000,000. Minnie Mouse’s assets and liabilities approximate their fair values except for inventories with carrying amount of P600,000 and fair value of P650,000, land with carrying amount of P1,000,000 and fair value of P1,500,000 and machinery with carrying amount of P1,200,000 and fair value of P1,500,000. The remaining useful life of the machinery is 10 years. Minnie Mouse’s net assets have a book value of P20,000,000. On December 31, 2019, Minnie Mouse reported net income of P8,000,000 and declared and paid dividends of P2,000,000. How much is the ending balance of share in Profit Account in 2019? choices: 1,594,000 1,600,000 1,604,000 1,602,000
On January 1, 2019, Mickey Mouse Co. acquired 20,000 ordinary shares out of the 100,000 outstanding ordinary shares of Minnie Mouse Inc. for P5,000,000. Minnie Mouse’s assets and liabilities approximate their fair values except for inventories with carrying amount of P600,000 and fair value of P650,000, land with carrying amount of P1,000,000 and fair value of P1,500,000 and machinery with carrying amount of P1,200,000 and fair value of P1,500,000. The remaining useful life of the machinery is 10 years. Minnie Mouse’s net assets have a book value of P20,000,000. On December 31, 2019, Minnie Mouse reported net income of P8,000,000 and declared and paid dividends of P2,000,000. How much is the ending balance of share in Profit Account in 2019? choices: 1,594,000 1,600,000 1,604,000 1,602,000
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 8MC
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Question
On January 1, 2019, Mickey Mouse Co. acquired 20,000 ordinary shares out of the 100,000 outstanding ordinary shares of Minnie Mouse Inc. for P5,000,000. Minnie Mouse’s assets and liabilities approximate their fair values except for inventories with carrying amount of P600,000 and fair value of P650,000, land with carrying amount of P1,000,000 and fair value of P1,500,000 and machinery with carrying amount of P1,200,000 and fair value of P1,500,000. The remaining useful life of the machinery is 10 years. Minnie Mouse’s net assets have a book value of P20,000,000.
On December 31, 2019, Minnie Mouse reported net income of P8,000,000 and declared and paid dividends of P2,000,000.
How much is the ending balance of share in Profit Account in 2019?
On December 31, 2019, Minnie Mouse reported net income of P8,000,000 and declared and paid dividends of P2,000,000.
How much is the ending balance of share in Profit Account in 2019?
choices:
1,594,000
1,600,000
1,604,000
1,602,000
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